Zcash [ZEC] maintained strong bullish momentum after defending the $500 support level four days ago, rallying to $593 before slightly retracing to $581 at press time. According to reports from AMBCrypto, the privacy coin's latest move pushed whales and leveraged traders toward a more bullish stance, with ZEC trading up 3.2% over the past 24 hours. The sustained rally came despite significant short positioning in the market, indicating strong underlying demand for the cryptocurrency.
According to Lookonchain data reported by AMBCrypto, a whale opened a 10x leveraged long position involving 36,875 ZEC worth $21.59 million, with the position reaching an unrealized profit of around $1.8 million. The increased futures activity was evident in CoinGlass data, which showed Zcash recorded $880 million in Futures Inflows compared to $800 million in Futures Outflows, resulting in Futures Netflow surging 87% to $80 million. Coinalyze data revealed the Long/Short Ratio dropped to 0.65 across major exchanges, with long positions accounting for 39% of open positions while shorts represented 60%.
CoinGlass data showed more than $3.8 million in short positions were liquidated as rising prices pressured short sellers across derivatives markets. As reported by AMBCrypto, this liquidation pressure accelerated bullish momentum and placed short positions at the center of ZEC's next move. The significant short liquidation suggests traders were forced to cover positions, strengthening the upside momentum and creating favorable conditions for continued price appreciation. The positive Futures Netflow typically indicated traders opened more positions than they closed, supporting the ongoing rally.
If additional shorts get liquidated while traders continue covering positions, ZEC could reclaim $600 and target $620 next, according to the analysis from AMBCrypto. However, the True Strength Index remained in negative territory, suggesting bullish momentum still lacked stronger trend conviction. For a confirmed breakout structure, ZEC needs a daily close above $600 to confirm bullish continuation and target the $620 resistance zone. Failure to reclaim that level could allow sellers to regain control and drag the market toward the $515 support level.
